State of the Medical Device Market in Peru
The economic projections appear to be positive for Peru in the near term, with the IMF forecasting 3.25% growth in 2020 and 3.75% growth in 2021. We’re seeing some of this reflected in medical devices/equipment.
According to ShareScope, a service from Global Health Intelligence (GHI) that analyzes import data and uses it to analyze market size & share for medical equipment and device brands in Latin America, 2019 figures for Peru show moderately positive results, depending on the area of focus and product type.
2019 Medical Device Market Analysis for Peru
To analyze the direction of Peru’s market this year, ShareScope focused on the imports of specific types of medical devices and equipment, specifically:
- Ultrasound machines
- Magnetic resonance imaging equipment
- Equipment used in orthopedics/treatment of fractures
- Artificial joints
- Heart valves
- Computed tomography (CT scanners)
- X-ray machines
- Radiography/Radiotherapy equipment
While this is not an exhaustive list of all medical equipment imported into Peru in 2019, it represents the major categories in terms of overall volume; as such, it serves as an overall indicator for the market in general.
Why Import Data?
ShareScope analyzes import data as a proxy for sales. This is because few products are manufactured locally and therefore imported medical devices and equipment are sold to medical institutions. As such, import data for medical devices and equipment are strongly correlated to actual sales and thus are a solid indicator of market activity.
“Equipment” and “Devices”
It’s important to note that the import data analyzed by ShareScope are not just the medical equipment and devices themselves, but also their parts and components.
2018-2019 Decreases in the Peruvian Medical Devices/Equipment Market
The chart below breaks down a year-to-year comparison for 2018-2019. It features the difference in both value and quantity in terms of equipment.
For 2018-2019, we forecast that 7 medical device/equipment categories will have drops in quantities in Peru:
- 74% decrease in the importation of radiography/radiotherapy machines
- 33% decrease in the importation of artificial joints
- 28% decrease in the importation of ultrasound machines
- 27% decrease in the importation of computed tomography machines
- 18% decrease in the importation of MRI machines
- 6% decrease in the importation of electrocardiograph machines
- 2% decrease in the importation of heart valves
In spite of these drops, there were some bright spots in the quantities imported into the country, which we cover further below.
In fact, overall, we forecast a 9% increase in the quantities of medical devices/equipment imported into Peru in 2019.
We also observed drops in the value of medical equipment imported into Peru in 2018-2019 in several key categories, specifically:
- 33% decrease in the importation of heart valves
- 24% decrease in the importation of MRI machines
- 24% decrease in the importation of artificial joints
- 10% decrease in the importation of ultrasound machines
- 1% decrease in the importation of electrocardiographs
Despite these decreases, overall, we expect to see a 1% increase in the value of imported medical devices and equipment into Peru in 2019.
2018-2019 Increases in the Peruvian Medical Devices/Equipment Market
Along with the downturns, some equipment categories posted increases. First, there was mild jump in quantities:
- 101% increase in the importation quantities of pacemakers
- 15% increase in the importation of equipment/parts for X-ray machines/parts
- 13% increase in the importation of equipment/parts for orthopedics/fracture treatment
In addition, we forecast an increase in the value of certain medical devices/equipment imported into Peru during the 2018-2019 period:
- 62% increase in the importation value of radiography/radiotherapy equipment
- 49% increase in the importation value of X-ray machines/parts
- 20% increase in the importation value of pacemakers
- 13% increase in the importation value of equipment/parts for orthopedics/fracture treatment
- 11% increase in the importation value of computed tomography machines/parts
Interpreting the Results
Peru generally had solid growth in GDP from 2014-2019, the so-called “lost half decade” in Latin America: +2.39% in 2014, +3.27% in 2015, +4.05% in 2016, +2.47% in 2017, +3.99% in 2018 and +2.3% in 2019.
Some of this growth seems to have been reflected in the medical device/equipment market. In 2014-2019, when it comes to medical devices/equipment in Peru, we observed:
- A CAGR of 21% increase in quantities
- A CAGR of 1% increase in value
That’s the big picture of the last few years.
In 2018-2019, what we’re seeing with Peru is generalized margin compression in which the average value drops by 3%. The exceptions to this are imaging equipment, particularly CT scanners, X-ray machines and radiography/radiotherapy equipment. We also observed overall market growth: a 9% increase in quantities and a 1% increase in value.
Given that Peru has some growth while also generalized margin compression, it becomes ever more important for medical device and equipment manufacturers to be analytical in finding new opportunities.
While existing contacts and prospecting are important, sales teams need to leverage more tools, such as:
- Overall market sizing and its trends
- Independent and unbiased market share tracking
- Streamlining CRM systems to integrate data from multiple sources into one platform the whole team can use
- Discovering new accounts that are ideal for high-end, cutting-edge medical devices
- Determining market demand outside of your regular client base
This analytical approach is helpful for all markets, but much more in markets like Peru, in which data can make the difference between exceeding your sales goals and falling considerably short.